A blog on issues affecting Australia's newsagents, media and small business generally. More ...

Who speaks for NSW newsagents?

NANA has made the running on the issue of the proposed privatisation of NSW Lotteries.  Yesterday’s Sydney Morning Herald reported that newsagents support the latest changes by the NSW state government.  The report quotes the ANF CEO.  The ANF CEO has been silent on this matter.  The NANA President has been the public face of representing NSW newsagents.  NANA does not support the latest changes announced on the govrenment.  Click here for a copy of their release on this matter.

The SMH report included this:

Mr Matis said wrangling over the sale had hurt the industry because finance companies were unwilling to fund potential buyers of newsagencies, thus preventing current owners from leaving the industry.

”Finance companies are loath to provide finance to newsagents, putting an unreasonable impost on them.”

I would like to see the evidence the ANF has for making such a claim, evidence of the “hurt” caused by the talk about the proposed sale so far, evidence of finance companies being loath to provide finance to newsagents” due to the lotteries proposal.  Indeed, the SMH journalist should have asked for this rather than accepting the ANF press statement.

I stand to be corrected but I doubt that the ANF has any evidence to back its claim.  I’d gladly publish it here if they do have evidence.

This is a state issue. The NSW state association should have the carriage of this issue, not a national body which the majority of newsagents ignore.

The question about the privatisation of lotteries is one for the politicians.  They have to make a political decision based on the needs of the state.  Unfortunately, the track record of privatisation, at the federal and state levels, is not good on a range of fronts.

What I do know is this, NSW newsagents receive more promotional support and in-store marketing assistance from NSW Lotteries than retailers of lottery products elsewhere.  From a retailer perspective, the current situation is good for business.  The government needs to understand the potential impact of its changes.

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Lotteries

Notebook magazine looks damaged

noteboog_magazine_trash.JPGThe revamped Notebook magazine which went on sale today is overshadowed by the damage to the promotional card instered in the magazine to pitch the free beauty hints book with the magazine. Most of the copies we received have cards which are ripped or bent.  They make an otherwise good looking (but thinner) magazine look secondhand.

If a publisher wants send magazines to retailers with something sticking out, they ought to ensure that their valuable stock is appropriately packaged.  They suffer and we suffer.  This is an easy issue to resolve in the logistics operation.

On the revamped Notebook, while it looks good, it is not as good as the original product.

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magazines

Ben Cousins on the cover of GQ magazine

cousins_gq.JPGWe are promoting GQ magazine above the Herald Sun at our main newspapers stand from today thanks to the Ben Cousins cover story.  Ben is big news in Melbourne.  Hopefully, our opportunistic placement drives good sales of this title.  We will leave GQ in this location for the next week and see how it goes.

UPDATE (13/8): This issue has sold well in the first day including from this newspaper display.  We have ordered extra stock.

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magazines

Promoting That’s Life and cash prizes

fhn_thats_life_aug08.JPGWe are pitching That’s Life at the counter from today, bumping the Open Gardens magazine which has not performed as expected.

The Deal or No Deal scratch card giveaway on That’s Life and regular strong sales for us made the decision to feature the title in this prime location easy for us.

That’s Life and Take 5 and great titles for delivering a good mid-week boost.

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magazines

A newsagent thief?

A colleague sent me an email about a thief who stole crossword magazines from his newsagency but left the tops. Is this the work of a compassionate former newsagent or newsagent employee?

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magazines

The challenge for newsagents in publishers charging for news websites

The announcements last week by News Ltd and Fairfax that they will introduce a paid model for their news websites needs to be carefully considered by newsagents.

Despite what publishers and some analysts say, it is a step in migration. Eyeballs have migrated online as have many advertisers. Introducing an access charge is the last step in replicating the print model online. As much as they can at least – classifieds are free online so it will be hard for publishers to bring that revenue stream across.

Charging for access is a challenge for newsagents because it may work. Publishers may find that they have a model which generated better than expected revenue. If this happens they will look to cut more loss making areas from the print model. It makes sense. This is where there will be a challenge for newsagents. Our relevance will diminish.

If the move to charge for content is not successful then both publishers and newsagents will have challenges. Publishers will need other ways of covering the costs of journalism. Newsagents will need traffic generators to replace newspaper customers who will migrate to other online news sources.

For too long, we have sat idle and watched sales move online. Most of our time has been invested in complaining. Sure some have created websites but these tend to be copies of a traditional newsagency. That won’t work.

The move by the publishers should be a call to action to us to be bold in pursuing our future.

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Media disruption

Cairns newsagents positive on the future

I was fortunate to spend some time with newsagents in Cairns yesterday morning at the QNF regional conference. They are a cheerful and positive bunch, focused on building their businesses. It says something about their commitment to the industry, the QNF and their businesses that so many come out for the day of business presentations and networking.  It may also relate to the beautiful part of the worl in which they are located.

Talking to some of the newsagents there reminded me of the tremendous diversity across our channel. Magazines I struggle to sell in suburban Melbourne sell out for them whereas magazines they struggle I sell out of. There was a good conversation of how we are not a one size fits all channel.

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Newsagency opportunities

iPhone focus for magazines

Seventeen magazine in the US yesterday launched an iPhone app.  Launched in association with an online shopping service, the app is interesting because it apparently delivers the publisher a clip of shopping purchases by Seventeen readers using the shopping service.  This is another way publishers will monetise online traffic.

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magazines

Is the Trading Post close to closing print edition

Sally Jackson writing in The Australian yesterday reported rumblings that the Trading Post may close its print editions.  Most newsagents looking at sales data this year compared to 2008 and 2007 would see this as a natural step.  No matter what promotions are tried, the Trading Post has been unable, based on the data I have seen, to deliver a sustained sales increase.

In our own case, we have significant prime real-estate allocated to the Trading Post.  Based on our rent, we need a net return of at least $2,000 a year to break even on rent.

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Media disruption

Newsagents cheaper than Coles

check_tickets.JPGCheck tickets cost 66 cents at my local Coles supermarket.  This makes them considerably more expensive than many newsagencies.  While Coles, and I am sure Woolworths, promotes great deals on brand name high volume items, there are other items which are expensive, like check tickets.

We could probably put together a shopping basket of ten common stationery items and compare our every day prices to the Coles everyday prices for the same items.  I expect we would be cheaper.

While such  price comparison may open a Pandora’s box, it could be key to showing your customers the value of shopping in your newsagency versus the supermarket.  Take a wander around your local national brand supermarket and see if you have this opportunity to promote your low price credentials against them.

However, before you promote a price comparison, ensure that you are permitted to do this under the terms of your lease.  I have seen a situation where tenants are not allowed to price compare against another tenant.

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Newsagency opportunities

Free in Dick Smith, not free at the newsagent

Tech living is a new magazine being published by Derwent Howard for Dick Smith where it will be available free.  The Australian yesterday reported that Tech living will also be distributed to newsagents for sale.  This is frustrating and will lead some shoppers to question why we charge for a free magazine.  This is an example of where we need to be able to say no to a title.

UPDATE: (12/8) I note the comments that the magazine is to be sold in Dick Smith stores.  I have sought claririfcation on this.

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magazines

The Saint Clint display

fhn_saint_clink.JPGWith display space at a premium this week we are launching the new partwork series The Saint, the vintage TV series, alongside the Clint Eastwood movie partwork.  We have both partworks co-located at our counter and in a display near our Father’s Day gifts.

I wish there was more thought put into the partwork launch calendar.  The rush of releases over recent weeks makes it challenging for newsagents who want to embrace the opportunity.  Partwork sales would be stronger if pre release consultation was better.

Partwork sales would  also be stronger if supply was more consistent and based on presale commitments from customers.  Some things never change in this model.

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partworks

Free coffee with Woman’s Day

womans_day_coffee.jpgWith space limited for magazine displays this week, we placed Woman’s Day next to the Herald Sun at our main newspaper stand.  This location is our highest traffic spot in the newsagency next to the sales counter.  It works for the coffee giveaway with Woman’s Day as we have been able to use the portrait poster quite effectively (we think at least).

There is only so much promotional space in a newsagency and on a day like today we have to be creative with placement..

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magazines

Promoting New Idea and the cookbook

fhn_ni_aug10.JPGWe have more magazines with promotional opportunities than we have space for.  This week’s issue of New Idea would usually get a counter position – thanks to the free cookbook.  Since that space is unavailable, we created this display in front of our newsagency.  We will leave this in place until at least Wednesday.  The same space was used successfully last week for That’s Life – with a similar type display.

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magazines

Promoting Shop Til You Drop

fhn_shoptil_aug10.JPGWe are promoting Shop Til You Drop to our customers as they leave our women’s magazine aisle.  This is on the back of an ACP magazine stand.  We have been using this space for several months now with good success – most recently for Dolly.    Even though gardening magazines are on the fixture to the left of the display, we are able to promote other titles on the display and drive sales.

This is a new premium promotion space for us.  We had to find new space when we reduced our traditional power end displays.  We reduced traditional promotional locations in pursuit of change and because we needed that space for higher margin product.  The change has resulted in uncovering new and valuable display opportunities – especially this space on show as people leave the aisle.

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magazines

Empire magazine hits the spot

fhn_empire_jul09.JPGEmpire magazine is going from strength to strength based on the sales data I have seen. It is certainly performing well in my newsagencies. We use it as a beacon brand to draw shoppers to the movies area of our magazine display. We promote titles round it which need support to find sales.

Building sales around a strong title is what we call our honey pot strategy, a strategy we us in several magazine departments to drive sales of weaker titles by using strong titles. It is terrific to have strong title like Empire in an otherwise challenged magazine segment.

I have newsagents who question me about our level of engagement aboout magazines.  They say that for 25% all magazine publishers can ask for is for the titles to be put out on the shelves.  My view is that right now magazines are a key point of difference for us.  Embracing this is crucial is we call ourselves business people.  The key is to leverage the magazine traffic into a more valuable shopping basket.  This is the pay-off for the work.

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magazines

Bagging British House & Garden

fhn_house_garden.JPGThe latest issue of British House & Garden came to us sealed in a bag with the current issue of Country Homes & Interiors and 25 Beautiful Homes. We sell all three magazines. The price of the bagged pack is less than buying the three separately. This is a good example of a magazine publisher driven promotion I wrote about last week. While, overall, I like promotions like this, I don’t see the sense for imported publications. This is a very different market than for domestic publications. I suspect that the bagging of the three was not even on the radar of the distributor here.

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magazines

GNS Melbourne trade show report

The GNS trade show in Melbourne this weekend has been successful. I know that yesterday’s numbers were on par with last year. Today’s numbers were good too. Newsagents were feeling good about business and the economy, plenty are investing in their businesses. This is a good sign. Some of the product talk I heard from newsagents was about new business opportunities but not enough.

It was good to see some suppliers expanding their offering and new suppliers participating expanding the traditional newsagency offering. We need to see more of this.

GNS opened the trade show to newsXpress and Nextra as well as Newspower. This sends a strong message to newsagents about the role of marketing groups. It also gives newsagents an easier choice between the three.

I have been going to GNS first since they started in a small room in Sydney many years ago. They have come a long way. For a business owned by newsagents it is a good success story.

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newsagency marketing

Good first time newsagency for sale

Someone I met through this blog has placed their small newsagency in southern Melbourne suburb on the market.  It is in a high street situation with good potential.  My knowledge of the business suggests it is a good opportunity for a first time newsagent.  It has Tattersalls which generates good traffic.  I’d be glad to point anyone interested to the brokers.

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Newsagency for sale

The business name says it all

compassionate_hair_studio.jpgPlease excuse this off-topic indulgence.  I thought I’d share a photo I took last week of a business I drive past regularly of The Compassionate Hair Studio. What a brilliant name. Does this make other hairdressers not compassionate?  Are they compassionate in their cutting?  In how they treat customers?  Jokes aside, they stand out and I remember them.

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Uncategorized

Playing with gift hampers

gift_hamper_love.JPGWe are playing some more with non-seasonal gift hampers in a couple of our stores.  The one in the photo is for love.  We have included several things someone would want to give to a partner or would-be partner.  We have tried to go for a variety of items in the box for each of the hampers we have made – to reflect several categories we have in-store.  We have made hampers for new baby boy, new baby girl, general female birthday, farewelling a co-worker and love.

While we have used hampers at seasonal times, this is our first concerted effort to drive sales outside of major seasons.

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Gifts

The Monthly looks back on track

fhn_monthly_jul09.JPGAfter what look to me like a couple of challenging months for The Monthly, the magazine has come out with a great looking issue.  The Nick Cave cover is stunning and works particularly well in traditional newsagency fixturing.  This is an excellent example of using the cover to cut through the magazine range in a newsagency.  While the masthead is important, the content of the latest issue is what gets an infrequent reader picking up a title.  we will pitch this title with our newspapers as well as the usual location.  The second location is earned by the stunning cover.

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magazines

Newsagency suppliers help Lin family reopen newsagency

NANA, the NSW Newsagents Association of NSW & ACT, has thanked the newsagency industry suppliers who have worked together to help the Lin family reopen their newsagency following the tragic death or Min Lin, his wife and three other family members.  NANA has done a terrific job co-ordinating the suppliers in difficult circumstances.  I am speaking from personal experience of what they have done.  NANA’s work is an excellent example of what an industry association is about.  They have done this work without promoting it or seeking to use it as a membership drive.  Well done NANA.

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Social responsibility

Express Publications in the spotlight

Jarryd Moore writing at his Unboxed blog intensifies the spotlight on Express Publications, a company about which I have written in this place.  Express Publications recycle what to me looks like junk, magazines without dates and with price stickers from months and even years past.  These old magazines are sent in sealed bags on a merry-go-round, on trucks which spew out carbon emissions.  There is an environmental story here.  There is also a story of the space these bagged magazine take up in newsagencies.  Finally, there is a story for the advertisers.  I wonder what they are told about circulation and readership?  Be sure to jeck our jarryd’s blog post and add your voice on this issue.

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magazine distribution

Listen to Rupert Murdoch explain his pay for news plan

Further to my post earlier this week about the announcement by Rupert Murdoch that News Corp. would charge for access to its news websites, go to this link at Crikey.com to listen to the full conference call.  This provides a more complete context.

This is the media story of the week with more than 4,500 stories online and 10,000 blog posts. It has sparked a huge debate as to whether people will pay for content.  The only way publishers will find the answer is if more of them throw up models.  The current approach clearly has financial challenges for them, something had to change.

The ABC yesterday published an excellent report on the charge or die imperative newspaper publishers are being told they face.

Personally, at this stage I don’t see myself paying for online news.  But who knows? As we found with iTunes, the distribution channel (iPod, iPhone) is the key.

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Media disruption
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